Since most of the labour laws being followed in this country were implemented prior to Independence and have therefore become redundant and outdated, the newly formed government at the centre, under the leadership of Narendra Modi, is seriously contemplating a revision of the existing laws. The Government intends to step up productivity by bringing forth these changes.

Changes in Britain: A law was recently implemented in Britain, one of the developed countries of the world. Employees working in factories and offices cannot be henceforth compelled to report to work at only a particular time. The law states that the employees shall be given flexi-time options to report to work at times that suit them and complete their tasks. For a casual observer, it might look as if the law is very pro-employee and anti-employer. But the law is actually intended to step up productivity. Experts in Britain felt that insisting on being seated for long hours or compelling workers to report to duty at a particular time or do only a particular task could be counterproductive. The changes were brought forth as a result.

Flexi-time work hours: The Indian Government too is planning to make similar changes in its labour laws. Changes like these, also known as “Flexible Working Hours”, are very likely to be implemented in India too, especially in the manufacturing sectors in order to step up the productivity. But these changes will be brought forth in such a manner that they bring forth the true potentials of the employees.

Also, changes like bringing in more and more workers within the minimum-wages slab, increasing overtime, enabling women to work in night shifts in factory environments, are also going to be implemented. The reforms are intended to minimize friction between the management and employees and thus increase productivity. As far as India is concerned, such reforms are only rarely implemented in the service sector, and almost never in the manufacturing sectors. Although India is the world’s third largest economy, more than 56% of the productivity comes from the service sector. Only 15% of the country’s productivity comes from the industrial and manufacturing sectors. In comparison, more than 45% of China’s productivity comes from its industrial workers.

The Government believes that there could be a tremendous increase in the country’s productivity by implementing reforms in the labour laws.